Hedge Fund Reader : SEC’s new mantra to reign in the hedge fund industry

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September 24, 2005

SEC’s new mantra to reign in the hedge fund industry

The new chairman of the Securities and Exchange Commission Mr. Christopher Cox wants to tighten the noose of control around the trillion-dollar hedge fund industry by implementing a new law. However, in a recent interview, his first after becoming the apex body’s chairman, Cox agreed bring about radical changes in the rules governing hedge funds. In walking a tightrope between creating a suitable regulative framework to prevent fraudulent happenings and playing to the hedge fund gallery he promised to create an atmosphere which would be conducive to the overall development of the industry. He concern was well founded since the hedge fund industry in the US is witnessing an explosive growth and the industry watchdog has a lot of responsibility weighing on its shoulders, to keep a close watch in the transition period. Mr. Cox also spoke about other important topics such as SEC responsibility in executive compensation, the election of a mutual fund’s management by directors who are independent of the fund’s management and the SEC’s stance of adopting punitive measures against corporate wrongdoers. CNN Money.com Reports:

Cox, a 52-year-old former California congressman and onetime securities lawyer, succeeded William Donaldson, who resigned as SEC chairman two years before his term expired after running into opposition when he proposed the rule requiring hedge-fund advisers to register with the SEC.

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September 24, 2005 in Regulation | Permalink